Mega mart one of the leading reatil outlets

1. SALES & RETAIL MANAGEMENT

2. INTRODUCTION
WHAT IS RETAILING ??
 Retail industry is divided in to organized and unorganized sectors.
 Over 10 million outlets operate in the country and only 5% of them being larger than
600 sq. ft in size.
 Organized retailing in India is projected to grow at a rate of 25-30% p.a., is estimated
to grow to $ 735 billion by 2015.
 Retailing is emerging as a sunrise industry in India and is presently largest employer
after agriculture. Some economists say that retailing is one of the pillars of the
economy in India, and some say it is the gold mine of Indian economy.

3. MEGA MART
 Mega Mart entered into retail clothing sector because of Arvind Mills and now
Mega Mart is flagship of Arvind Mills, M&M gets its stock from Arvind Mills,
Bangalore.
 Mega Mart Retail ltd is a Lal Bhai group enterprise, It is headed by Lal Bhai and
his sons Srikanth and Charan .
 It is India’s leading retailer that operates in multiple formats.
 The company operates across 70 cities in India and has huge employee base.

4. MEGA MART RETAIL FORMAT
ARAVIND
RETAIL LTD
MEGAMART
SMALL
FORMAT
MEGA MART SMALL FORMAT
2000 – 6000 sq. feet
25 private brands
Limited product category
MEGAMART
BIG FORMAT
MEGA MART BIG FORMAT
35000 -65000 sq. feet
200 private brands
Wide range of product category

5. LOCATION ANALYSIS
Mega mart usually chooses prime city locations
 SHOPPING MALLS
 CBD [CENTRAL BUSINESS DISTRICT]
 PRIME STREET AREAS
 COLLEGE JUNCTIONS

6. CUSTOMER SEGMENTATION
 KIDS WEAR,

MEN’S WEAR,

WOMEN’S WEAR,
 SPORTS WEAR,
 HOUSE APPARELS,

FOOT WEAR,

ACCESSORIES ( SUN GLASSES, PERFUMES , WALLETS, ELECTRICAL
APPLIANCES, WATCHES,)

7. SUPPLY CHAIN MANAGEMENT
 Mega mart has an efficient supply chain system, because it has network all over India. It
saves and decreases it costs with efficient supply chain system.
 Mega mart main branch is in Bangalore. Main branch receives the stock from Arvind mills.
 Every Mega Mart store uses online software which tracks the opening stock and closing
stock.
 Based on the sales the stores will get the stock from main branch where the stock is stored.
 If any branch wants stock they can also keep order. Generally every branch will get the
stock once in a week.

8. MERCHANDISE MANAGEMENT
Mega mart has access to huge brands in small stores it maintains upto 25 private brands limited
product category & in large stores 200 private brands are available with wide range of product
category.
 WRANGLER,
 FLYING MACHINE,
 LOUIS PHILLIPIE,
 LEE,
 PEPE JEANS,
 EXCALIBUR,
 LEVIS,
 RUGGERS,
 BEL MONTE,
 FAST TRACK
 CELEBRITY,
 INDIGO NATION
 PARK AVENUE
 PETER ENGLAND ,  REID & TAYLOR
 CHEROKEE,
 ALLEN SOLLY ,
 SCULLERS

9. STORE LAYOUT AND DESIGN
 Mega mart has grid layout, due to place constraints they follow this
type of layout and design system.
 Back room: In Mega Mart the store room /back room are at the
backside of the store where all the excess stock will be stored there.
 Aisles: The aisles here are not large to accommodate peak crowd.
One/two customers with their tally can pass through the Aisles.

10. Contd..
 Billing Counters: space at the billing counter is maintained enough so that many
customers will come for billing at a time and thus this reduces the confusion. And billing
counter is at entrance so customers can go easily.
 Shrinkage Prevention: As there would be no old/excess stock there are very less chances
for store shrinkage in Mega Mart, because they always keep stock update.
 Merchandise design: All the racks are make sure to fill up with the products very soon
after they are finished and products of same category are made available to the customers
at certain location and thus helping the customers in their purchase.

11. SALES PROMOTIONS
 Birthday Offers To Individual Customer
 Hand Pamphlets ,
 News Paper Ads On Week Ends
 Festival Season Promotions
 Email, Mobile Promotions
 Mobile App Pop Ups

12. PRICING STRATEGY FOLLOWED
 Mega Mart is a discount Store it follows one pricing policy.
 They will give discount up to 50% on MRP and add 4% VAT tax on MRP. In
Mega Mart we will get discounts every day. We can find special discounts on
festival days and week ends.
 When the stock is not moving out from the store or if the management is
unable to sell any particular product then they keep offers like buy 1 get 2
free, 50 % off, buy 1 get 1 etc.

13. PRICE ADS

14. SWOT ANALYSIS
STRENGTHS
 Financially sound & Competitive advantage in terms of the retail locations of the store.
 The merchandise is designed uniquely to fill the market gap in middle to lower middle income group level.
 Merchandise is fashion oriented & is targeted towards the family house holds and youth attracts all
customers.
 Contributes to a very large market size.
 The store signed in youth icons and with working professionals in ads with models.
 Mega mart has a huge loyal customer base & customers are highly satisfied with the store.
 Mega mart enjoys the good will and reputation earned by the Arvind mills over the years.

15. SWOT ANALYSIS
STRENGTHS
 Financially sound & Competitive advantage in terms of the retail locations of the store.
 The merchandise is designed uniquely to fill the market gap in middle to lower middle income group level.
 Merchandise is fashion oriented & is targeted towards the family house holds and youth attracts all
customers.
 Contributes to a very large market size.
 The store signed in youth icons and with working professionals in ads with models.
 Mega mart has a huge loyal customer base & customers are highly satisfied with the store.
 Mega mart enjoys the good will and reputation earned by the Arvind mills over the years.

16. WEAKNESS
• Lack of differentiation
• Visual merchandising of the store demands a great amount effort. The
product are displayed in a very geometrical pattern creating a huge but
brush effect and sending across a message that the merchandise is
comparable to FMCG products.
• Small stores are not able to attract customers as the brands available are less.

17. OPPURTUNITIES
 Fresh stock at
low price and thus trying to differentiate from other
competitors.
 Customers who demand fashion merchandise with high and medium on
quality available at accessible price to patronize the store.
 It can TARGET TIER II AND TIER III cities of the country and can adopt a
market penetration strategy.
 The store offers in-house labels and thus has freshness associated with it.

To convert brand loyalty into brand equity

18. THREATS
 Negligible awareness about the presence of store in cities where the store is not present.
 The company is started in a time when retailing is booming attracting lot of competition
from various other players
 It has positioned itself for premium, middle income consumers it should also concentrate
on lower middle income people.
 Mega mart faces cut throat competition from stores like “lifestyle, Pantaloons, and
Shoppers Stop, reliance trends” respectively. These are well established in the market
and grabbed a good market share.

19. PORTERS ANALYSIS OF MEGA MART
SUBSTITUTES
BARGAINING
POWER OF
SUPPLIER
RIVALRY
AMONG
COMPETITOR
SELLERS
NEW
ENTRANTS
BARGAINING
POWER OF
BUYER

20. ROLE OF STORE MANAGER ??
 To check inventory levels.
 To forecast demand for brands.
 To analyze which brands are fast moving and slow.
 To check employee work force.
 To maintain proper customer database and use it to build CRM.
 To have proper channels of SCM.
 To predict when to use push and pull strategies.

21. E COMMERCE IN RETAIL
 Mega mart is having its own website and in which all the product
details of different level customers are mentioned with different
catalogues.
 Mega mart doesn’t focus on much in E commerce sales as it believes
apparel shopping is best done by experiencing especially by INDIAN
middle class consumers.

22. INVENTORY MANAGEMENT
 Mega Mart store use online technology through which they can know
availability of stock. They use bar code scanner.
 They use customized technology called JDS Software

23. CLEARANCE & DISCOUNT SALE
Mega mart stores clearance and discount sales are available throughout
the year.
 During end of every climatic season there will be clearance sales.
 When sales are down in certain off season clearance sales &
discounted sales will be put up.
 Discounted sales will be available during festive seasons and
month ends with attractive offers.

24. CUSTOMER RELATIONSHIP MANAGEMENT [CRM]
 Mega mart focuses collecting data base from each of its customers through a
structured questionnaire.
 Mega mart issues its own style of value card to its customers in order to maintain
database and also keep track of customer shopping's in its various outlets.
 Mega mart informs its loyal customers through special individual offers through
mails and messages.
 Mega mart also gifts its customers on their special occasions like birthdays,
anniversary's etc.

25. By
SATHVIK H P
SHASHI KUMAR M R